The report is divided into three parts.

1. The overview of global DWP market. The market has recovered from the crisis since 2020. High energy costs forces some industries to reduce production. The profit is also impacted by changing prices of chemicals and shipping cost, and thus producers have to raise selling prices as much as possible.

2. Analysis of global DWP supply and demand. On supply front, the utilization rate of global capacity has recovered to the level seen before the pandemic. However, the fast capacity expansion during 2020-2022 outpaced demand growth. In terms of demand, China cellulose usage represents 53% of global total cellulose demand. Despite the recent slowdown, rayon grades DWP demand remains the key driver for the cellulose industry.

3. Pricing of DWP. Rayon grades DWP price saw a spectacular price recovery in 2021/22, and specialty grade price caught up in 2022. The margin between VSF and DWP prices is now slightly below the 10 year past average. Asia DWP import prices are lately regaining ground due to mill supply limitation and inflation costs.